Peripheral tourism industries slashed in Swan’s budget

In Australian Domestic Tourism, Editorial, Government, National Headlines

The Tourism News 15/5/13

‘Tourism and area promotion’ funding will drop $20m in the next two years but more significant is the loss from peripheral tourism industries. ‘Arts and Cultural Heritage’ will lose $84m before 2015-16, contributing to a ‘total recreation and culture’ loss of $263m. ‘Road transport’ is down $841m.

2013-14 Australian Federal Budget original location Statement 6: Expenses and Net Capital Investment

(Tourism-peripheral lines underlined)

Beneath table: Fairfax Economist Ross Gittins’ Analysis

Australian Federal Budget 2013-14

Statement 6: Expenses and Net Capital Investment (Continued)

Appendix A: Expense by function and sub‑function
Table A1: Estimates of expenses by function and sub‑function
Estimates Projections
201213 2013‑14 2014‑15 2015‑16
$m $m $m $m

General public services

Legislative and executive affairs 1,021 1,335 1,222 1,033
Financial and fiscal affairs 7,749 8,112 8,194 8,335
Foreign affairs and economic aid 5,896 6,752 7,010 7,650
General research 2,639 2,663 2,648 2,511
General services 683 695 704 728
Government superannuation benefits 7,567 3,466 3,460 3,499
Total general public services 25,555 23,023 23,237 23,756
Defence 21,122 22,045 23,345 25,094

Public order and safety

Courts and legal services 899 1,007 981 980
Other public order and safety 3,129 3,264 3,151 3,108
Total public order and safety 4,028 4,272 4,132 4,087

Education

Higher education 8,724 8,997 9,321 9,829
Vocational and other education     1,904 1,954 2,128   2,124
Schools 12,419 13,778 14,441 15,748
Non-government schools 8,094 8,916 9,277 9,970
Government schools 4,326 4,861 5,164 5,778
Student assistance 3,532 3,599 3,498 3,458
General administration 268 268 257 250
School education – specific funding 1,563 1,147 740 381
Total education 28,411 29,742 30,386 31,790

Health

Medical services and benefits 25,307 25,552 27,430 28,918
Hospital services(a) 2,694 2,762 2,038 1,900
National Health Reform Payment 13,252 13,941 15,432 17,060
Pharmaceutical benefits and services 10,689 11,139 11,664 12,087
Aboriginal and Torres Strait Islander health 752 851 826 854
Health services 6,362 7,053 7,418 7,481
General administration 3,192 3,337 3,273 3,296
Total health 62,249 64,636 68,081 71,597

Social security and welfare

Assistance to the aged 50,984 54,754 57,620 61,648
Assistance to veterans and dependants 7,046 7,006 6,880 6,795
Assistance to people with disabilities 23,873 25,479 27,208 29,156
Assistance to families with children 35,256 34,945 35,534 36,353
Assistance to the unemployed and 8,559 9,550 10,559 9,830
the sick
Other welfare programs 1,663 1,637 1,649 1,687
Assistance for Indigenous Australians nec 1,145 1,043 939 928
General administration 3,861 3,731 3,631 3,513
Total social security and welfare 132,388 138,145 144,021 149,911

Housing and community amenities

Housing 2,877 3,361 3,183 3,146
Urban and regional development 560 660 782 596
Environment protection 3,460 4,754 4,965 2,766
Total housing and community 6,898 8,775 8,930 6,508
amenities

Recreation and culture

Broadcasting 1,748 1,761 1,682 1,680
Arts and cultural heritage     1,118 1,179 1,164   1,095
Sport and recreation     375 388 363   317
National estate and parks     400 368 342   341
Total recreation and culture     3,641 3,696 3,551   3,433
Fuel and energy 6,168 7,586 7,557 7,701

Agriculture, forestry and fishing

Wool industry 54 58 55 57
Grains industry 173 182 189 193
Dairy industry 53 54 54 56
Cattle, sheep and pig industry 173 180 182 182
Fishing, horticulture and other agriculture 242 252 250 248
General assistance not allocated to 28 30 29 29
specific industries
Rural assistance 139 194 179 143
Natural resources development 1,052 998 1,083 1,420
General administration 690 708 688 720
Total agriculture, forestry and fishing 2,605 2,654 2,709 3,047
Mining, manufacturing 2,267 2,431 2,734 2,592
and construction

Transport and communication

Communication     589 582 561   500
Rail transport     1,032 1,425 1,406   1,396
Air transport     208 210 209   204
Road transport     2,529 3,501 3,190   2,660
Sea transport     319 342 353   366
Other transport and communication     326 393 836   880
Total transport and communication     5,002 6,453 6,555   6,005

Other economic affairs

Tourism and area promotion     181 189 187   169
Total labour and employment affairs 4,271 4,358 4,319 4,381
Vocational and industry training     1,658 1,590 1,581   1,545
Labour market assistance to job seekers and industry 1,803 2,059 2,025 2,120
Industrial relations 809 708 712 716
Immigration 3,575 4,376 3,617 3,461
Other economic affairs nec 2,337 2,359 2,362 2,342
Total other economic affairs 10,365 11,283 10,485 10,354

Other purposes

Public debt interest 12,209 12,456 12,733 12,902
Interest on Commonwealth 12,209 12,456 12,733 12,902
Government’s behalf
Nominal superannuation interest 6,778 8,462 8,773 9,093
General purpose inter-government 51,160 52,397 56,171 59,248
transactions
General revenue assistance – States and Territories 48,935 51,234 53,804 56,778
Local government assistance 2,225 1,164 2,367 2,470
Natural disaster relief(b) 1,894 147 97 22
Contingency reserve -1,301 98 2,166 3,873
Total other purposes 70,741 73,560 79,940 85,139
Total expenses 381,439 398,301 415,663 431,015
(a) The hospital services sub‑function includes payments from the Commonwealth to the States and Territories for specific hospital improvement initiatives and is in addition to hospital funding provided under the National Health Reform payment sub‑function.
(b) Amounts for the Natural Disaster Relief and Recovery Arrangements (NDRRA) reflect expenses being recorded in the year in which the disaster occurs rather than when payments are made to State or Territory Governments in relation to Commonwealth financial obligations under the NDRRA.

ROSS GITTINS: Labor chooses the brave way out

Published on smh.com.au home page as ‘Ross Gittins: The weirdest Budget you will ever see’

This is the weirdest budget you or I are ever likely to see. That doesn’t make it bad – just very strange.

With just four months until the election, it’s the most unlikely pre-election budget you could imagine, with loads of nasties and next to no sweeteners. It is  more like a post-election budget, particularly the kind you get after a change of government.

But its strangeness doesn’t end there. The Parliament has so few weeks left to sit, it is likely most of its controversial measures won’t become law before the election (with the increase in the Medicare levy the main exception).

That makes it less a budget than an election policy speech. Only if Julia Gillard is re-elected can we be sure the budget measures will become a reality.

And since the chances of Labor’s re-election seem low, this is more Tony Abbott’s budget than Gillard’s. It will be he who decides which measures survive and which don’t; whether Labor’s last budget becomes anything more than its final, impotent gesture.

Do you think Gillard doesn’t know that? This is the budget of a government that knows it’s a dead duck.

Usually when governments know they are going to lose, they  go for broke, offering electoral bribes they know they will never have to find a way to pay for, aiming to minimise their loss of seats.

Not this time. This budget is more likely to cost Labor votes than win it any.

No, the purpose of this budget is not vote-buying – it is reputation-rescuing, a last-ditch attempt to influence what history will say about the Rudd-Gillard government  as an economic manager.

History will be impressed by this budget – and a lot more forgiving of Labor’s shortcomings than voters are likely to be on September 14.

At this time in 2010, Wayne Swan seized on a Treasury projection three years into the future and boasted about his feat of returning the budget to surplus in 2012-13.

In the following election campaign, Gillard foolishly turned that long-range projection into a solemn promise.

This time last year, Swan boasted of budgeting for four surpluses in a row, as though they were in the bag. His surplus of $1.5 billion for the financial year just ending is now expected to be a deficit of $19.4 billion (but even that isn’t yet certain). This year his boast of being able to get the budget back to a surplus of $6.6 billion in 2016-17 (again on the basis of Treasury’s long-range projections) will draw understandable cynicism.

But just as Swan and Gillard should have more sense than  to attach much weight to economists’ forecasts, so should the rest of us. Treasury’s crystal ball will be no more reliable after a change of government. Less initial naivety on the part of the media and the public would reduce ultimate cynicism.

The strength of this budget – should it come to pass –  is that Swan has found sufficient saving measures (90 per cent of them tax increases) to cover the cost of the painfully slow phase-in of the disability insurance scheme, the Gonski school funding reforms and other new spending measures.

He has  found other savings to make a start on reducing the budget’s significant ”structural” deficit – the product of excessive generosity by successive governments – and eventually getting the budget back to surplus, but without endangering the economy’s tricky transition from mining-driven to consumer and business investment-driven growth over the coming year.

These additional, structural deficit reductions build from nothing in the coming financial year to $6billion in the following year and $12billion in each of the next two years. Being saving measures, these figures are less dependent on predictions about the state of the economy and so are easier to believe.

By my rough figuring, they will eventually reduce the structural deficit – that is, claw back unfunded handouts – by about 60 per cent.

It has to be said, however, that few of the nasties in the budget  will cause  voters to lose much sleep. They are aimed mainly at the well-off and foreign multinationals.

Even so, for a government that’s been far too timid in tackling unjustified spending programs and tax breaks, this budget is surprisingly brave.

And if, by being the one to propose last night’s unpopular measures, Gillard makes it easier for Abbott toagree to them now or to introduce them after the election, Labor willdeserve respect for initiating such a heavily disguised form of bipartisanship.

For what it’s worth, this is a good budget. But that is the trouble: under these strange circumstances, it ain’t worth a lot.

 

You may also read!

Immerse yourself in Kakadu’s Indigenous culture at the Mayali Mulil Festival

“Connect with our culture, our environment and our spirit” is the message of the Indigenous Traditional Owners of Kakadu’s

Read More...
Jetstars $22 domestic sale

Huge jetstar sale

Jetstar has dropped a 4-day sale for fares to the Sunshine Coast from just $60* Over 20,000 sale

Read More...

Gold Coast Beer & Cider Festival

After being forced to postpone by last year’s pandemic, the inaugural Gold Coast Beer & Cider Festival will now take place

Read More...

Leave a reply:

Your email address will not be published.

Mobile Sliding Menu